The most common cliche I hear is “Follow your passion” or, “do what you love” when asked what kind of business to start.
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1) Find a company you know is going to blow up. (Facebook, Groupon, Zynga)
2) Invest as much money in it as possible, at every opportunity.
3) Once the media jumps on it and other investors get in…
4) Get out (cash out).
5) Repeat.

http://www.zdnet.com/blog/foremski/this-is-how-yuri-milner-has-already-made-billions-from-the-new-bubble/1717

Nobody’s going to hit a home run every single time. For that reason, we need to take steps towards hitting our short term goals while at the same time working for our long term goals

In the long run, the most effective way to make long term, scalable cash is to create a business that requires little maintenance.

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Let’s say you own a business and either you or one of your employees makes a mistake.

Here’s an example from Yelp, where a business has made a mistake, but makes it up quickly to it’s customer.

“Upon the advice of the 40 Yelpers who had reviewed Carlos Exclusive Auto Service, I booked my car for a 30,000 service. The job went well – it was ready on time and at a reasonable cost. BUT … fast forward a day. I drove to San Jose and smelled burning oil. A quick look under the car tells me I have an oil leak. Filled it up with 3 quarts and it dripped straight through. Read more…

Let me refer you guys to a potentially life changing document called The Perfect Business– by Richard Russell.You’ll find that internet businesses meet many (maybe even all) of the characteristics of a perfect business.

The reason why I feel that e-commerce is the best is because of low high start up costs with a huge margin for potential.

• “2004 online retail sales rose 23.8 percent to $89 billion, representing 4.6 percent of total retail sales. Including travel, online sales also rose 23.8 percent to $141.4 billion. Online retail sales will reach $109.6 billion [in 2005]. Online sales including travel will rise to $172.4 billion this year.” — Forrester

This means that the internet is a great place to do business, and it’s constantly growing. It can be just as profitable as running a brick and mortar (real life) store, but is easier to manage because of a variety of programs that you can use.
The fruits of labor show almost immediately, compared to traditional brick and mortar companies. You can monitor traffic at pin point accuracy and know how you’re doing, where people are coming from and where they are exiting from. This allows you to plug holes that you might have, that you wouldn’t otherwise be able to see in real life.

There are dozens of monetization methods on the web like Google Adsense, Yahoo Publisher Network, Azoogle, just to name a few.